LendingClub personal loans review

17 December 2018

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias.
But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

This peer-to-peer lender is an established source for loans up to $40,000.

finder.com’s rating: 3.8 / 5.0

★★★★★

LendingClub is a San Francisco-based peer-to-peer lender that offers personal loans. Finding out your potential rate won’t affect your credit, and you may be eligible for a large unsecured personal loan with competitive rates. However, with mixed ratings from former borrowers and a few past problems with honesty, you’ll want to carefully consider your terms if you decide to apply.

First, do I qualify?

In order to qualify for a loan from LendingClub, you’ll need to meet some basic eligibility requirements.

Have a credit score of at least 640

Have a working bank account

Be a US citizen or permanent resident

Be at least 18 years old

Residents of Iowa and West Virginia are not eligible for a loan from LendingClub.

What makes LendingClub unique?

LendingClub is a peer-to-peer lender that uses investors — which can range from individuals to corporations — to fund its personal loan options. It is an industry leader that continues to set itself apart by providing personal loans to borrowers across the US. Since 2007, LendingClub has funded over 2.5 million loans and has been featured by both the New York Times and The Economist.

Your rates will be determined by a Loan Grade, which ranges from A to G. Depending on this grade, you’ll pay a loan origination fee ranging from 1% to 6% of the loan amount and an APR ranging from 6.95% to 35.89%.

How does a personal loan through LendingClub work?

Rather than funding a loan directly, LendingClub is a peer-to-peer lender with investors that can range from individuals to corporations. When you apply, you can check your rate and eligibility through a quick preapproval application that won’t affect your credit. If you receive preapproval, you can submit a full application and supporting documents.

When calculating your interest rate, LendingClub considers your “Loan Grade,” which is based on the information you supply in your application. Confirm the APR — the interest rate plus any fees you pay — you’re offered to get an idea of the true cost of your loan. If you’re fully approved for a loan, all you need to do is wait for investors to provide you with funds. After your loan is funded, LendingClub transfers the money to your bank account.

Payments are automatically deducted from your bank account monthly, but you can also pay by check, although there is a $7 fee for this option. You can partially or fully prepay your loan at any time without penalty.

What are the benefits of a LendingClub personal loan?

Preapproval won’t impact your credit. You can apply with LendingClub without affecting your credit score. It will only be checked once you complete a full application.

Fixed payments. LendingClub personal loans come with a fixed rate, which means you pay a consistent monthly payment for the term of the loan.

Cosigners welcome. Not sure you can qualify for a competitive rate on your own? LendingClub is one of the few personal loan providers that allows you to apply with a cosigner to strengthen your application.

Rebuild your credit. LendingClub reports your payments to the three major credit reporting bureaus so you can build up your credit history.

Available in 48 states. LendingClub is available everywhere but West Virginia and Iowa.

FDIC insured and SEC registered. Your account cash balance is deposited at Wells Fargo Bank, an FDIC-insured institution. It has also been registered with the US Securities and Exchange Commission since 2008.

What to watch out for

Relatively long turnaround. It can take some time to get connected with investors: As few as 3 days. In comparison, some direct online lenders providing funds in as little as one business day.

Origination fee. LendingClub personal loans come with an origination fee of 1% to 6% of the loan amount, which is higher than some other personal loan options. This amount is deducted from your loan before it’s transferred into your bank account.

Compare up to 4 providers

Is LendingClub legit?

Yes. LendingClub has a safe website that guards your personal and financial information related to your loan. It’s also FDIC insured, registered with the SEC and has a standard SSL encryption to keep your information safe. All of these make LendingClub a legit provider to do business with. You can also view LendingClub’s Privacy Policy on its website to learn how your information is used to fund your loan.

Was LendingClub involved in a scam?

Not exactly, but LendingClub hasn’t always followed the rules. There have been two major controversies surrounding LendingClub’s loans in the past few years.

The FTC complaintIn April 2018, the FTC filed a complaint against LendingClub over its “no hidden fee” promise, claiming that it had charged hidden upfront fees on several of its loans. LendingClub responded by pointing out that it clearly states that its loans come with origination fees multiple times, several places on its website and when borrowers apply for a loan.

LendingClub’s CEO resignationIn March and April of 2016, LendingClub’s founder and former CEO Renaud Laplanche stepped down after internal reports found that there had been about $22 million in loans sold to a single investor and failure to disclose possible conflicts of interest. Although this had a major impact on LendingClub’s credibility, the company itself took appropriate measures to prevent fraud and account for false revenue. Because LendingClub resolved the issue internally and continues to work at increasing the transparency of its policies, this was not a scam. Rather, it was a problem with a single individual that the company handled quickly.

What do customers say about LendingClub?

LendingClub gets mixed online reviews, though the majority are negative as of July 2018. It gets an A- rating from the Better Business Bureau (BBB), which it’s been accredited with since 2018. The BBB bases its ratings on factors like how a business handles customer complaints and advertising practices — not reviews.

Out of the 109 customer reviews on LendingClub’s BBB page, only 33 are positive. On top of this, 254 customers have filed a complaint against LendingClub with the BBB. It does even worse on Trustpilot, earning a low 3.4 out of 10 based on 12 reviews.

Several customers complained about a complicated application process, managing their loan online, and high interest rates. A few customers were also disappointed that they’d gotten a preapproval letter in the mail but were ultimately rejected. The handful of positive reviews were written by customers who said applying was simple and easy, however.More about LendingClub loans

What do I need to apply?

To apply for a personal loan with LendingClub, you’ll need to meet general eligibility requirements.

You must have a credit score of at least 640.

You must have a valid bank account.

You must be a US citizen or permanent resident.

You must be at least 18 years old.

What are the steps to apply?

You can begin the application process by clicking the green Go to site button on this page.

Select whether you are choosing to apply alone of with someone else, then click Next.

Fill out the required fields with your home address and annual income, clicking Next after each.

Create an account using your email and a password. Be sure to read the Terms of Use, Privacy Policy, E-Consent form, and Credit Profile Authorization before clicking Get Your Rate. This step won’t affect your credit score.

If you’re preapproved, LendingClub will give you multiple loan offers. Select the offer that best fits your needs to apply for that loan.

Follow the directions to fill out the rest of your application and submit any required documents. At this point, LendingClub will do a hard credit inquiry that will cause your credit score to drop a few points.

Review, sign and submit your application.

Wait for investors to fund your loan.

Once your loan is funded, you’ll typically receive the money directly into your account within four days. Overall, the whole process can take a week from start to finish.

I got a preapproval letter from LendingClub. What does it mean?

It’s not uncommon for lenders to send out promotional letters to customers they think might qualify. These include potential rates and terms, based on a soft credit pull that has no effect on your credit score. You might have gotten a letter from LendingClub that looks like this:

While it’s likely legit, there are also preapproval scams out there. Before you hand over your personal information, reach out to LendingClub to make sure it’s real. Didn’t get a letter? Follow steps below to get an estimate of your rates.

There are no application, origination or prepayment penalties and you have a short grace period of three to seven weeks before your repayments start.

You can find a healthcare provider near you that offers LendingClub Patient Solutions on its website.

I got a personal loan from LendingClub. Now what?

Now it’s time to keep up on repayments. Luckily, LendingClub offers automatic prepayments on a fixed monthly schedule. This service eliminates the need worry about making the due date each month, just be sure you have money in your account. If your payment is not successfully completed, there is a $15 fee.

While you can pay by check, there is an additional fee of $7 per payment. If you would like to pay via your bank account, but not automatically, you can do so without incurring extra charges.

You have a 15-day grace period if you need to get your payment in a little late, but LendingClub encourages you to call or email as soon as you know you’re going to have trouble making a payment. If you don’t complete a payment within the 15-day grace period, the greater of either a fee of $15 or 5.00% of the installment amount will be assessed.

Compare LendingClub to its top competitors

Bottom line

LendingClub could be a good fit for those with an established credit history who want an alternative to a bank loan. Keep in mind that you may still be faced with high APRs and that LendingClub doesn’t have the perfect record, so comparing your personal loan options is a must. And if you want to stick with a peer-to-peer lender, you can also browse our guide to peer-to-peer lending. However, with large loan amounts and good terms available, LendingClub is still a competitive option for borrowers.

No. A personal loan from LendingClub can’t be used for any secondary education expenses, including college. If you need a private student loan, consider these options instead.

Yes. You can either change the date for your next payment or permanently move your monthly payment to a different day.

If you only want to change the due date for your next payment, you can log into your account and set your payment for up to 15 days after your original due date. You can also permanently change your due date by visiting the Payment Due Date section and choosing a new monthly due date.

Disclaimer

All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.95% to 35.89%*. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: LendingClub, 71 Stevenson Street, Suite 1000, San Francisco, CA 94105.

† Per reviews collected and authenticated by Bazaarvoice in compliance with the Bazaarvoice Authentication Requirements, supported by anti-fraud technology and human analysis. All reviews can be reviewed at reviews.lendingclub.com.

Funding time is based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between January 1, 2018 to July 20,2018. The time it will take to fund your loan may vary.

Personal loan ratings

★★★★★ — Excellent

★★★★★ — Good

★★★★★ — Average

★★★★★ — Subpar

★★★★★ — Poor

We analyze top personal loan providers and rate them one to five stars based on factors that are most important to you. These factors include: rates and fees, customer reviews, loan amounts, loan processing and borrower experience.

Anna Serio is a staff writer untangling everything you need to know about personal loans, including student, car and business loans. She spent five years living in Beirut, where she was a news editor for The Daily Star and hung out with a lot of cats. She loves to eat, travel and save money.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

10 Responses

LoriNovember 13, 2018

I have a personal loan with Lending Club, would like to borrow an additional loan and add my income.

Hi, there! As I’m a nonresident student, by the way, I’m living outside of US, after all I don’t work right now, for I don’t find job. can I find loans or grants to come study abroad and pay after? I’m looking forward to hearing you,soon. thanks!

The first thing you need to do is find the school you want to enroll in. After that, you can then ask the school whether they know any student loan or financial institution that can help with your situation.

Moreover, it is worth noting that if you are going to apply for a student loan and you are a non-US resident, generally, a co-signer is required for most international student loan programs.

I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

Generally, for LendingClub personal loan they require that the applicant must be at least 18 years old. Should you need to know more about the requirements and eligibility criteria for this loan. You may need to review the details provided above.

Thank you for contacting finder. We are a comparison website and general information service, we’re more than happy to offer general advice.

To apply for a personal loan with Lending Club, you’ll need to meet general eligibility requirements.
– You must be a US citizen, a permanent resident or in the US on a valid long-term visa.
– You must be at least 18 years old.
– You must have a valid bank account.

You’ll need to gather the following information before applying:
– Your name, contact information and date of birth.
– How much you want to borrow and the purpose of the loan.
– Your credit score range.
– Your annual individual income.

If you are offered a loan, you can watch as investors offer you loans with varying APRs and repayment terms. Once approved, you’ll typically receive the funds directly into your account within seven days. You may proceed by clicking the green “Go to Site” button for more details.

Thanks for contacting finder, a comparison website and general information service.

Please note that the loan options that we currently feature on our pages are only applicable within US and the lenders that we feature on our pages could only cater to loan applicants who are either residents or citizens of the US or US visa holders who are currently residing in the US.

Kindly get in touch with your local banks or lenders for possible loan options that you may apply for in your region.

We endeavor to ensure that the information on this site is current and accurate
but you should confirm any information with the product or service provider and
read the information they can provide. If you are unsure you should get independent
advice before you apply for any product or commit to any plan.

finder.com is an independent comparison platform and information service that
aims to provide you with the tools you need to make better decisions. While we
are independent, we may receive compensation from our partners for featured placement
of their products or services. We may also receive compensation if you click on
certain links posted on our site.

Thank you for your feedback.

Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.

Advertiser Disclosure

finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.